Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Monday, June 19, 2006
Home Depot Governance Conflict
Home Depot (NYSE:HD) announces that they have completed a review and their executive stock option plan does not smell bad. Everything is appropriate. Just a short while ago they also announce they will no longer be reporting critical sales figures. Monthly and same store sales reports are de rigeur in retail but not the SEC. Transparency suffered badly. Can, may or will insiders take trading advantage over investors on the outside who need to do research. Not the best move in a governance conflicted era.